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| freeye |
 Posted: Fri Jul 08, 2005 7:09 am Post subject: Do Investing Commandments Over-Rule the Rules? |
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Investing Manager
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grimreaper:
thanks to jumbojacks most recent post here we all know that jim cramer has 10 commandments and 25 rules investing discipline.
commandments and rules are always open for interpretation based on everyones unique circumstances. quite often commandments and rules conflict with each other and rules can and do conflict with rules.
out of jim cramer's 10 commandments 30% or 3 out of 10 of his commandments deal with handling investment losses.
it would seem like handling losses has the highest priority with jim cramer since no other aspect of investing is represented with so many commandments.
commandment #2 "first loss is best"
#3 "take your losses"
#7 "control your losses"
if jim cramer took a loss in NT.
it would be helpful for us to know the reasons and circumstances surrounding his decision so we may adequately evaluate whether jim cramer made a sound judgment or whether he wrongly or knowingly violated a commandment or a rule.
grimreaper, would you be interested in doing just such an evaluation?
freeye |
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| Grimreaper |
| Posted: Fri Jul 08, 2005 7:27 am Post subject: |
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CFO
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Sure Freeye, I'll do it again for the third time  Cramer said he bought NT at 7.00 off the retracement from 8.80, I know for a fact that he added at 4.25ish because another Cramer watcher who listens to his every word like you do subscribed to his service and posted at a discussion board at another site when he did so, on his show the other day he mentioned how he ended up selling out of his position at 3.00, so not only did he not follow his own rule, he compounded the mistake by averaging into his loss, of course Cramer had no idea that NT is on its way to becoming a sub 1.00 stock, I sho do! but I doan buy crap stocks based on funnymental anal-ysis like Cramer does  |
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| freeye |
| Posted: Fri Jul 08, 2005 10:07 am Post subject: |
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Investing Manager
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grimreaper:
what was the reason given by cramer for the sale? without knowing that no one can say for sure if he did or didn't violate one of his rules or commandments.
thanks!
freeye |
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| Grimreaper |
| Posted: Fri Jul 08, 2005 10:27 am Post subject: |
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CFO
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I guess he was just following Rule #11, when the stock loses 50%+++ from the point of purchase, SELL!!!!!!!  |
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| freeye |
| Posted: Fri Jul 08, 2005 2:42 pm Post subject: |
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Investing Manager
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hey grimreaper!?... jim cramer has no rule like the one you just posted!?
oh well!
have a nice weekend grimreaper!
freeye |
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| cwing |
| Posted: Mon Jul 11, 2005 10:20 am Post subject: |
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Associate
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| Crammer saying to sell LU. I say go long for this one It's been low for so long now but I think it will eventually turn around. |
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| Grimreaper |
| Posted: Mon Jul 11, 2005 12:13 pm Post subject: |
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CFO
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| Cramer on a rolllllllllll tonight! according to him the VIX is no longer a valid indicator, yet he still watches it, so he advised the caller who axed about the VIX to buy on market weakness, so what do we do? just buy buy buy like he said at the open of the show? or buy on weakness like he told the caller? what do you think Freeye? I predict that Cramer will one day soon change his mind about the VIX and its validity |
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| freeye |
| Posted: Mon Jul 11, 2005 12:39 pm Post subject: Jim Cramer says to Sell Lucent, (LU)? |
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Investing Manager
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to cwing:
jim cramer still maintains a position in lucent technologies, (LU) in some of his accounts possible his actionowners.com portfolio.
jim cramer also has said he would take some profit off the table once he has a profit in the (LU) position but he said recently he was still 0.20 cents under breakeven.
i'm guessing jim cramer holds the same view as you do on (LU).
can you clarify cwing what were the circumstances that jim cramer told someone to sell their (LU) stock.
thanks!
freeye |
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| cwing |
| Posted: Mon Jul 11, 2005 2:40 pm Post subject: |
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Associate
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| My friend actually watched it this past weekend and he said sell the guy is a pretty reliable source. Because I was the one getting him to invest into stocks. I told him my stance on SIRI taken Grim's advice and he told me not to sell based on what cramer said that siri will still increase b/c of chrysler will start installing sirius in there cars. Maybe he got the guys name wrong and it was some other guy on TV that does a similar program if so my bad. |
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| Dave Rathbun |
| Posted: Mon Jul 11, 2005 5:01 pm Post subject: |
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CFO
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| cwing wrote: | | chrysler will start installing sirius in there cars. |
They already do. You can get Sirius setups, and a new car comes with a one-year subscription. The question is, who's paying for it? Is Sirius donating the first year to try to capture new customers? Are they discouting the service to Chrysler? Is Chrysler passing the cost straight through to the consumer? It would be interesting to see how this directly affects the bottom line.
Also, once the first year is up, the consumer would have to subscribe. How many will do so? |
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| Grimreaper |
| Posted: Tue Jul 12, 2005 3:28 am Post subject: |
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CFO
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| Answers: yes, SIRI gives away free radios and 1 year subscriptions to carmakers to promote the product, and just before Mel K. took over the % of new subs by giveaway was apx. 1/3, I don't know what it is now, the fact is that SIRI has never made money even though they have more than doubled their subscriber base, and I doubt they will ever have earnings, SIRI is basically a stock that is driven solely on hype, when news comes out that the masses can cling to the stock price ralllies, just that simple, then idiots bail like they will on any bad news although I doubt today's downgrade tkes it too far down, but I still don't believe it will see 8.00+ before it sees 4.00, it could easily see my target of 7.50-7.60 again, the markets are just completing the setup phase and gathering up everyone who wants in at any price and making sure they get their wish |
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| Dave Rathbun |
| Posted: Tue Jul 12, 2005 5:39 am Post subject: |
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CFO
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Something that bugs me 'bout both Sirius and XM... their equipment is totally incompatible. So the big push from Sirius to get into Chrysler cars is probably an answer to XM getting into GM and others. Once the equipment is there, you really have no choice as to which service you want. Or you have to rip it out and start over.
It's like having to pick between AM or FM radio. Dealer: "So, which type of radio would you like? AM or FM?" Customer: "I want flexibility, I want choice, give me both." Dealer: "I'm sorry, but that's not possible. We install only proprietary equipment so you're locked into a specific service for the life of your car." Customer: "Okay, when you put it that way, shove it."
Here's another interesting question, at least it's interesting to me, and it literally just popped into my head as I'm typing this... where are the satellite radio pirates? You know, like Cousin Billy-Bob that could hook you up with a satellite TV descrambler made out of tin cans and barb wire...  If the content offered by Sirius / XM isn't interesting enough to steal, is it interesting enough to sustain a company? There may be stuff out there, I don't know, I don't go looking for that sort of thing. But it just stuck me as an interesting metric as to which of the two (Sir versus XM) might be the most successful... who has the most pirates. |
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| cwing |
| Posted: Tue Jul 12, 2005 5:55 am Post subject: |
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Associate
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| They're are already pirates for both sirius and xm.... I read a guide on how to do it on the internet not too long ago. But I dunno how long it would work for b/c I think both systems update software on your hardware. The hack or whatever you call it makes it so you don't accept any write packets (disable them) that means you sign up then cancel. But before you do disable that part of the system. The average joe would not be able to do this. |
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| Grimreaper |
| Posted: Tue Jul 12, 2005 6:20 am Post subject: |
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CFO
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The SIRI/XMSR story is similar to Blockbuster Video when it came out, the stock was hot, everybody loved the story, eventually nobody wanted to own BV, until I think some other company came along and bought em out (and paid too much I'm sure  ), as far as the current stock price since that's all that really matters I could see XMSR going to a new 52 week high, I can't see SIRI doing that, it all really depends on the Naz at this point, if the Naz clocks out then so will SIRI, I think there is one more run personally, at 42.00+ XMSR would be one of the best shorts on the planet, but SIRI will probably fall harder when it falls, Howard Stern is gonna be pissed if they can't pay him the $50 mil a year, so all of you SIRI longs had better start buyin SIRI's overpriced stock so Howard can get paid or at least sign up 2 of your friends for the service, or buy 2 more radios as gifts, that should help the price of the stock, the SIRI faithful think like that anyway, no really! they do!!! |
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| freeye |
| Posted: Tue Jul 12, 2005 8:43 am Post subject: |
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Investing Manager
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grimreaper said:
"so what do we do? just buy buy buy like he said
at the open of the show? or buy on weakness like
he told the caller? what do you think freeye?"
good question grimreaper:
i have found jim cramer to be difficult to interprete sometimes so i can appreciate your position in trying to follow what he says sometimes.
jim cramer generally likes to buy on weakness in an individual stock on a down day in the over-all stock market.
however, if he sees value at the current level a stock is at he will say he likes (XYZ) at these levels which may mean to stage your buys into the (XYZ) stock if you see it trading around the price it was at when he made the recommendation, and in this case a down day in the over-all market is not required.
i would have to check his commandments and rules posted on the jim cramer radio topic to see if this issue is specifically addressed there.
hope this helps grimreaper!
freeye |
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